TFSA question
This isn’t happening to me but I’m going to use first person to tell the story and ask my question as it’s for a friend.
A parent has maxed out my TFSA hiding money from the other in a divorce under the assumption that once finalized all of the money will be given back. I haven’t invested a cent myself.
Unfortunately, my parent is a dogshit investor and picked a number of stocks that preformed poorly (-50% in the last year).
The divorce is settled but the parent doesn’t want to remove the money as that would mean realizing the loss. I have just started a new job making crazy money and would like to use my TFSA to build wealth myself.
Q1. If I have the parent withdraw the money at its current value do I just straight up lose the 50% room it’s lost forever? Eg. $10,000 total original room, lost $5,000, withdraw it today, is my room $5,000 or back to $10,000 because I’ve removed every asset from this?
Q2. Is there any other way FINANCIALLY I’m getting fucked which I don’t currently realize?
Q3. Should I force the sale of the stock and just soak the loss, let the stock sit until it hopefully rises, force the sale and encourage the purchase of mutual funds to slowly build it back up, or take the parent to court and fight for my space back?
Thanks guys!